Chinese Investments in Africa: Focus on Kenya
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School of Business |
Bachelor's thesis
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Date
2022
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Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
55
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Abstract
Objectives The main objectives of this study were (1) to examine how Chinese FDI in infrastructure affects the Kenyan economy and (2) to identify how much power the Kenyan government exerts over Chinese investments in infrastructure. Summary Chinese investors have a growing interest in Africa, currently financing numerous infrastructure projects all over the continent. Concerns about a Chinese debt-trap have been voiced throughout Western countries. To determine the real impact of such FDI projects on the Kenyan economy and the control the Kenyan government has over them, a Kenyan government official was interviewed. Conclusions It was revealed in this research that the Kenyan government has much more influence on implementing Chinese FDI in infrastructure than is generally thought. Accordingly, most of the issues related to Chinese infrastructure projects in Kenya actually derive from the local political environment. Chinese investors have taken advantage of the corrupt Kenyan elites, effectively circumventing local laws and regulations. Such practices have significant negative effects on the Kenyan economy. The Kenyan government must make some radical changes to its way of operating if it wishes to achieve long-term socioeconomic development.Description
Thesis advisor
Mihailova, IrinaKeywords
China, Kenya, Africa, foreign investments, infrastructure, Sino-African relations, developing countires, debt